Trai to float paper on definition of AGR soon

NEW DELHI: Telecom regulator will soon issue a consultation paper to review the definition of adjusted gross revenue (AGR) for all types of licences given out by the communications ministry, according to internal documents seen by ET.


The Telecom Regulatory Authority of India has told the telecom department that it intends to take a comprehensive look at the definition of AGR, rather than offering its opinion only for internet service providers. Last month, DoT had asked Trai to give its views on the definition of AGR for the licence for internet service providers.

The subject has been contentious with the operators suggesting that revenue arising only out of rendering telecom services should comprise AGR while the telecom department says that it should include all revenue earned by a service provider including from corporate receipts, handset sales, real estate transactions and interest earned from bank deposits.

The government levies a cascading spectrum usage charge and licence fee on the AGR earned by an operator.

In a communication to the telecom secretary last week, the regulator reasoned that a lone recommendation on the ISP licence may “create a non-level playing field among various telecom service providers” and proposed to “holistically review the definition of AGR for all telecom licences”.